Teekay secures Norwegian financing

Teekay Offshore has secured long-term financing from the Norwegian Government for four new shuttle tankers being built at Samsung Heavy Industries (SHI).

Each shuttle tanker will be equipped with a new technology developed by Wärtsilä in co-operation with Teekay, resulting in zero volatile organic compounds (VOC) emissions from the vessels.

On behalf of the Norwegian Government, Export Credit Norway and GIEK have provided a loan and a guarantee of $165.5 mill. The financing is part of a larger syndicate involving several commercial banks and a foreign export credit agency.

In addition, Enova, which contributes to Norway’s transition towards a low emission society, has granted subsidies of NOK133 mill to the four shuttle tankers.

“It is gratifying that this innovative new technology developed in Norway has led to trade. This project includes many Norwegian sub-contractors and contributes to the restructuring of the Norwegian economy, value creation as well as keeping employment in Norway,” said Norwegian Minister of Trade and Industry, Torbjørn Røe Isaksen.

The Norwegian Government imposed restrictions on VOC emissions in 2003. The new VOC recovery system developed by Wärtsilä reduces VOC emissions by up to 100%, converts the emissions into liquid gas, and feeds the gas into a VOC fuel tank as a secondary fuel for the vessels. This provides an annual fuel bunkering reduction of up to 3,000 tonnes of LNG, the company claimed.

Combined with other energy efficiency features of the vessels, the total reduced bunkering requirement and CO2 reduction amounts to 50%, compared to the existing fleet. In addition, NOx and SOx emissions are reduced by more than 80% and 95%, respectively.

The new tankers, scheduled for delivery from Samsung in 2019-20, will also be fitted with equipment from other Norwegian suppliers, such as Brunvoll, MacGregor Pusnes, Kongsberg, Jotun, Glamox and others.

“We are excited to have received long-term financing from the Norwegian Government for our latest generation of shuttle tankers. These vessels will be the most environmentally friendly shuttle tankers ever built. What makes me particularly proud is that bunkering requirements and CO2 emissions will be reduced by approximately 50%, thereby reducing the environmental footprint of our operations significantly,” said Ingvild Saether, President & CEO, Teekay Offshore Group.